Name the person or people you want to get the money, plus a backup. A minor child cannot get the money directly, so many parents use a trust or name a guardian to manage it.
Your primary beneficiary gets the money first. Your contingent beneficiary gets it if the first person has died.
If a child under 18 is named, they will not get the money themselves. A court may need to appoint someone to manage it. That can take time and cost money.
A trust is one way around this. A trustee you pick manages the money for your kids the way you want.
If you name no one, the money may go to your estate and through probate. That can slow things down.
Check your beneficiaries after big life events. Marriage, divorce, a new baby or a death in the family are good times to review.
- Name a primary and a backup
- Use a trust or guardian for kids
- Update after marriage, divorce or a new baby
- Keep the insurer's form current
More questions
Can I split the money between people?
Yes. You can split it by percentage.
How do I change my beneficiary?
Fill out your insurer's form, and some allow it online. Then confirm the change went through.
Can I name a charity?
Yes. Some people name a charity as beneficiary.
Words to know
- Beneficiary
- The person you name to get the death benefit when you die. You can name more than one.
- Contingent beneficiary
- A backup beneficiary. They get the money if your primary beneficiary can't be found.
- Estate
- All the money and property a person owns, especially at death.
- Probate
- The court process for passing on a person's property after they die.
